Vista wraps up $4.6bn sale of Apptio to IBM

Apptio is a business management system of record for hybrid IT.

  • Vista acquired Apptio in 2019 in a $2bn take-private deal
  • IBM is a multinational tech corporation based in New York
  • Vista is a private equity firm that invests in enterprise software, data and tech companies

Vista Equity Partners has completed the sale of Apptio, a business management system of record for hybrid IT, to IBM in a $4.6 billion deal.

Apptio is based in Bellevue, Washington.

Vista acquired Apptio in 2019 in a $2 billion take-private deal, and announced on June 26 that it was selling Apptio to IBM for $4.6 billion.

Nadeem Syed, senior MD and head of value creation at Vista, discussed in an interview with PE Hub in July how Apptio grew under its control, with revenue doubling and Ebitda margins increasing by 4x.

IBM will augment its watsonx AI and data platform with Apptio’s $450 billion in anonymized IT spend data, according to a release.

“Our journey with Apptio is a testament to Vista’s ability to create consistent outcomes that drive value for our stakeholders,” said Robert F. Smith, founder, chairman and CEO of Vista. “We are proud of our continued momentum, even amidst these challenged market conditions, and look forward to seeing how Apptio’s technology will bolster IBM’s IT automation and AI capabilities in the years ahead.”

Apptio’s acquisition is one of a series of investments in IT automation by IBM over the last three years, following the launch of its IT Automation portfolio in 2020, acquisition of Instana later that year, and Turbonomic in 2021.

IBM is a multinational tech corporation based in New York. The company provides global hybrid cloud and AI.

Vista Equity is a private equity firm that invests in enterprise software, data and tech companies. It is based in Austin, Texas.